How To Multiply Your Wealth As An Employee.

By Prisca Aroko.

Robert Kiyosaki, the Rich Dad Poor Dad author once said, a wealthy person is simply someone who has learned how to make money when they are not working. But with 52 per cent of people in the country employed, how do such people create wealth?

On Family Radio’s Wednesday Jam 316 morning show, the financial clinic segment discussed ways in which people who are in the employment sector can create wealth.

Financial consultant Eric Sitati defines wealth as achieving your God given purpose in life and having a peace of mind at the end of the day while pursuing your life.

Some of the common mistakes employed persons looking to build wealth make is the thought of not planning on what you have while anticipating for a better pay or job. This pushes a person to not invest and not save because one thinks the money they have is too little to accomplish anything with it.

Another mistake is that most employed people borrow to live. This is basically living beyond one’s means. For example if someone is earning Sh 30,000 and his monthly surplus is Sh 40,000, then it means he had to borrow an extra Sh 10,000 to survive.

The extra money accumulates through small loans from friends, borrowing from mobile banking that require interests when paying back and taking things from shops with intention of paying later.

However Eric Sitati advises people on having a financial goal that have timelines so that by the end of the stipulated time, you will have known how much you have invested in and what you are investing in.

The most important thing to know to create wealth is postponed gratification. This involves saving to invest. Then the revenue gained from investing can be compounded by reinvesting until you hit a mark that you are comfortable with.

For example if you save Sh 3000 a month in a Sacco, this amount earns you 10 per cent p.a in one year which is close to Sh 72,000.In five years, still saving that amount of money per year gets you Sh 256,000.

This can get you a loan three times the amount which one can invest in something credible that can make money for you in return.

Buying land is one of the ways one can create wealth with. Land appreciates and it generates wealth. You can buy land and build rentals that go from houses built using iron sheets to buying houses through real estates.

Another idea is an enterprise. Though it may be tough balancing your enterprise with employment but with good planning, having a side hustle can be the road to creating wealth.

However before you commit your money to an enterprise, get information on areas you are interested in. It could be investing through a real estate, farming, Sacco.

Lastly, one needs to have patience in whatever you commit to do to start creating wealth. Some things take time and expertise while others just require one to cut a niche for oneself. Whatever the situation is, patience is key and the reward is your money working for you.

SHARE

Warning: A non-numeric value encountered in /home/customer/www/radio316.net/public_html/wp-content/themes/Newspaper/includes/wp_booster/td_block.php on line 353